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New Square Loan in 2024

I’m at a bit of a loss for what else I need to do to be offered a new Square Loan at this point. I’ve been with Square for over 10 years, had 7 loans now that I’ve have paid back early every single time. Metrics are all in green, record sales year. In 2023, record numbers across the board, no refunds, no complaints or issues of any kind in our entire history. Current loan is 80% paid off, but no new offer in site. This is the kind of stuff that causes businesses to find someone else to process through! Please help! I’m sure I’ll get the same old excuses that you guys send to everyone about looking at every aspect of the business. But there isn’t a single aspect that isn’t way up. I’m not sure if there is a new process they are using now, or if there is some kind of issue with my banking or something else I’m not thinking about or aware of. Any help would be much appreciated. Thanks, because I could really use some new capital to start the year off with and reinvest into my business!

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I'm really sorry to hear about your frustration with the loan offers. I understand how important it is to feel valued, especially as a loyal customer. Let me try to address your concerns and provide some clarity.

Loan Offers and Qualification Parameters

Square’s loan offers are based on a variety of factors, and while past trends have shown offers at certain thresholds, the exact parameters can change over time and are not always disclosed in detail. Here are a few points to consider:

  • Dynamic Criteria: Square uses a complex set of algorithms that take into account not just the repayment percentage but also your recent sales history, account health, and overall business performance.
  • Market Conditions: External market conditions and internal policy changes can also impact when and how loan offers are extended.

Value Beyond Transaction Fees

I understand that a 3% card transaction fee can seem high compared to other providers, but Square offers several features and benefits that help justify this cost:

  • Integrated Ecosystem: Square provides a comprehensive suite of tools that work seamlessly together, from point-of-sale systems to online stores, invoicing, and inventory management.
  • Ease of Use: The user-friendly interface and intuitive design make managing your business simpler and more efficient, saving you time and reducing the need for extensive training.
  • Reliable Support: Square offers robust customer support and resources to help you resolve issues quickly and keep your business running smoothly.
  • Secure Transactions: Advanced security measures protect your business and customers from fraud and data breaches.
  • Analytics and Reporting: Detailed analytics and reporting tools help you understand your business performance and make informed decisions.

 

I understand the disappointment regarding the loan offer, please know that Square regularly reviews its criteria and your status. I recommend reaching out to Square’s customer support for a more personalized review of your account and to express your concerns directly.

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Good news, bad news, eh @cmeshine.  There are a number of reasons that COULD be part of why your new offer was lower.

 

  1. Square might be slowing down on how much loan exposure they want to have on their balance sheet.  They are, after all, a publicly traded company that has to answer to their shareholders and investors.
  2. If our sales are flat or at least not growing at a good rate to cover inflation and higher interest, then Square’s algorithm understands that inflation is eating into our available cash to pay bills, etc.  Flat sales (or very slowly growing sales) are always red flags to lenders, Square or not.
  3. Sometimes how long it takes us to pay off our current loans can be a factor.  Let’s say that previous loans were paid off with automatic payments in 8-10 months in the past.  But for this current loan it took us 12-15 months.  That tells Square that our card processing volume can’t keep you with higher loan amounts.  Yes, they give us 18 months to fully pay a loan, but they obviously prefer that we pay them off closer to the 12 month mark.
  4. If our cash/card ratio drastically changes, and cash spikes or is consistently higher than historical for our business, that is another red flag.  Since Square must only consider card volume when calculating repayment rates this can become a problem.

Of course, I’m not saying that any of these contributed to your lower offer.  I’m just throwing out a few reasons why this CAN happen.

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
Facebook
Click here to see a list of third-party apps I use to add functionality to my Square account!

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Congratulations! I am sorry it's lower than expected but you are correct about daily swiping vs not. That's one of the metrics. I'm retail furniture and I process daily. If 90.00 or 900.00 a swipe is a swipe and they each add up at the end of the day. Hopefully, the next offer will go up! I don't know if the algorithm picks up how your business processes I hope it will or maybe that's something that should be addressed to square. You are not alone and a big market for venues and events. The same goes for contractors who send out invoices and how fast the customer pays. Congratulations on at least getting one and thanks for the update and details about it.

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Congratulations!!!! I'm so glad to hear this and higher at that! Thank you for sharing and helping others, trying to hold strong 💪 

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Wish it was easier to determine eligibility, have had my last loan paid off since the 29th of June and still no new offer, everything in the green sales up and increasing each day, have an opportunity to grow the business with a small loan but nothing yet  fingers crossed it won't be long 👀

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Good luck to you! Growth is amazing 👏 it's been rough as you see. I truly wish you the best, and hopefully, that Ole algorithm will kick in! Please keep us posted. It does help others to get a feel for what is going on with the loans.

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Hello, 

we have had 2 loans with square and fully paid off our most recent on July 9th.  We fully expected to receive a new offer and 1 month later we have nothing.   Everything is good and green.  Our sales are up 842% from last time they offered us a loan. Weve never been late.  We paid off both loans early.  Ive called customer service 3 times and nobody will telll us whats holding it back or help in anyway.   @ links to members

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Hey @Craftsmandrywal.  First, I know for a fact that loan offers are going out.  I’ve receive at least 4 (a few more I think) in the past few months, even though I’m not looking for a Square Loan.

 

I can give you some insights but of course no concrete answers.  

 

It seems that right now Square Loans are coming later, even much later, than in the past or what sellers expect.    Why?  Because if you read the news, or follow the financial journals, you’ll see that all lenders are being very conservative about how much they have on their balance sheets.  Rates with the Fed are still high and will only come down slowly.  There is talk every day of a looming recession, which I think is crazy since the signs for recession just aren’t coming together.  But markets don’t like that kind of talk.  The point is Square is not the only lender who is holding back.  I’ve seen sellers here waiting until the 90% range to get a new offer, and more than a few who completely paid off their existing loans and then waited a while (weeks if not months) before a new offer showed.  This, as they say, is just the way it is.  The lending market is being highly conservative and cautious.  Hopefully, that will change soon.

 

Unfortunately, no one at Square can tell you much more.  Square uses an automated algorithm to determine whether or not offers will go out, and human intervention for this process does not exist.  The loan status dashboard just highlights potential problems and bottlenecks, but it DOES NOT guarantee that if everything is green then an offer should be coming — soon or otherwise.

 

If you really need money now, of course I’ll suggest that you reach out to your local bank or credit union.  They might be able to help, but they might not.  This conservatism and reluctance to have too much loan exposure on balance sheets is worldwide right now, unfortunately.

 

Regardless, I wish you well.  And, if this LONG reply is too much — and all you meant to do here was vent your frustrations and didn’t want feedback — then please accept my apologies.

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
Facebook
Click here to see a list of third-party apps I use to add functionality to my Square account!

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Sounds like a lot of us. Been paid off for 7 weeks already never late on any of our loans and no new offer. Very sad!

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Yeah, I have been paid off since June 8th, all green, no issues, no loan.  I have spoken to them and same generic answer.  Very disheartening.  

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I have called as well same bs .they say nothing is wrong with account so .

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It is, and I jumped on other pos forums, and they are not happy and passed given up on it. 3-4 have been waiting since last summer when it did this. A couple of them went to their banks, and they left right away. They said 802 credit score been with them for years, etc. Sounds all great until they wanted their vehicles as collateral the husband's work tools, and they left over a 15k line of credit. I hate to see people hurting that need it to replace broken pizza ovens or an opportunity to expand and grow. People send me messages and ask why did she get it 82% and need to work on multiple items, and I'm up 200% all green and paid off? I don't know believe how that algorithm is set or if this page would be empty! But I see our new little town loanerville is growing fast. Good luck 👍 💓 and I hope it is tonight for you 

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It's not you if scroll down through the feed. There's a good bunch all paid as well. Lending is tight right now all around the world. When they start talking about and using words like the stock market just crashed all over the world and recession it's lending usually 💯 has shareholders to answer to and books that need to be good it tightened up. We also have an election coming up and they are watching that as well. All we can do is keep each other updated on share information and hold tight. Hopefully, with those numbers that Ole algorithm kicks in and picks you off. Good luck to everyone waiting 

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Square is so weird. 
I got an offer and approved in less than 4 minutes. I just paid off my last loan a few hours ago. It was a bit less than my last loan. But definitely helped in the nick of time!

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That's awesome congratulations 👏. Happy for you

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Thank!

j will say, I was at 86% paid off for two days as I was taking small payments for a fundraiser we’re doing right now. But all green.

Then processed a large payment, which paid off the balance of the loan. When the dashboard updated, it said I was not eligible. Then a couple hours or so after it updated for the day, I got the offer.

Again, it was like 20% lower than my last loan, but a surprise offer nonetheless.

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Congratulations!!!! Thanks for updating everyone waiting 

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congrats! that gives me some hope! I got to 94% today but today was the first day of school and riiiidddiculously slow after being slammed yesterday. I have about $1995 left to pay off of 29K, but if things pick up again i should be paid off in the next week or two. 

 

mine updated at 2:58pm today. all green. 

 

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82% paid no offer 😫

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Praying that everyone that needs one get one .iam at 84 % and usually about 1 %a week .Hopefully soon 

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Did you ever get an offer 

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Just got a loan offer on one of our locations today!! (Still waiting for approval, so not singing victory yet). 
85% paid.

Sales 116% from same point last year. 
7 years with Square.

This would be our 11th loan. 

Offered 35% less than last time, the equivalent of one month's gross sales. 

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Woohoo!!! Congratulations 🎊 

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Still here, still waiting! Be nice to see some other UK based posters so I could compare what I’m seeing on my dashboard etc, I suspect it looks different to US based as I have no way to see when the last time the algorithm updated my account lie you guys do. Paid off since April on a 27k (first and only) loan which was paid back in 9 months and always way ahead of my 60 day minimum.

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